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A good way to discover the reality behind the “off the cuff” extrapolation would be to look at some charts. If you look at charts every day on mulitple time frames you will discover that many pairs move simultaneously in the same or opposite directions making similar patterns. No rocket science is required to see that.

Hello Josh. Sorry that you didn’t quite get this. The point is that if you normally trade either the EUR USD or GBP USD you could check the EUR GBP to see which of these two pairs would be better for any short entries this week and which would be better for long entries based on the relative strength of the EUR vs. the GBP. If that doesn’t makes sense, nevermind.

This doesn’t make any sense. You say at the end to short the EURusd and long the GBPusd. Why not just take a short on the EURGBP?

Secondly you say that you can look at the ‘contrast’ of currency pairs. This is something which constantly fluctuates along with volatility. You can’t rely on past data amalgamated into an estimated off the cuff extrapolation (which hasn’t even been quantitively plotted) without a quantitative connection found to make a trading decision.